What is included in investment (I)?
A)the amount spent on stocks and bonds
B)the amount spent on consumer goods that last more than one year
C)the amount spent on purchases of art
D)the amount spent on new factories and machinery

Question

Quizplus · Accepted Answer

Investment (I) includes the amount spent on capital goods such as new factories and machinery, which contribute to the production of goods and services. Choices A and C are incorrect as they do not directly contribute to the production process. Choice B refers to durable goods, but these are considered as consumer spending, not investment.

What Is Included in Investment (I)